Hoffman, who surged to the brink of victory after becoming a rallying point for disaffected Republicans and tea party activists, lost to Democrat Bill Owens 49 percent to 46 percent in a contest that grabbed national headlines.

“I think time was the biggest factor, and if [Hoffman had] had a bit more time, he would have won,” said Everett Wilkinson, a South Florida-based tea party organizer who was watching the contest closely. “I wouldn’t consider it a loss. I think we were successful.”

Janet Spencer, a South Carolina-based tea party activist who in September chartered two buses to take 75 of her neighbors to the nation’s capital for the Taxpayer March on Washington, went one step further, declaring the outcome a win.

“In my opinion, I do consider it kind of a victory because he had a lot of odds going against him and not a lot of time,” she said.

Others dismissed Tuesday’s defeat as one lost skirmish in a larger battle to remake the Republican Party and establish populist conservatism as a political force.

“We plan to continue to play a role when we see a candidate who should be kept from Congress or when we see a candidate who should be advanced,” said Marjorie Dannenfelser, president of the Susan B. Anthony List.

Dick Armey, the chairman of FreedomWorks, the limited-government, anti-tax organization that has been instrumental in ginning up tea parties, said Hoffman’s loss was simply a function of having too little time — just two months — to mount a successful campaign.

In a conference call Wednesday with reporters to discuss the 2009 election results, Dannenfelser, Campaign for Working Families PAC President Gary Bauer and National Organization for Marriage Executive Director Brian Brown largely avoided analyzing the New York special election and focused on GOP victories in the New Jersey and Virginia gubernatorial races.

Bauer, a longtime social conservative leader, trumpeted the defeat of a Maine measure that would have legalized gay marriage, with Dannenfelser declaring: “It was a big night for social conservatives, no doubt about it.”

If conservatives were preoccupied with reading the tea leaves of Hoffman’s loss, which came despite late polls suggesting the Conservative Party nominee had surged into a commanding lead, they weren’t showing it.

They refused to accept any share of the blame, shrugging off the defeat to a difficult political environment in the race — a three-way contest in which Republican Dede Scozzafava dropped out in the final days of the campaign and threw her support to Owens — and an inexperienced candidate in Hoffman.

“I think the dynamics were difficult,” said Dannenfelser, whose organization directed more than $140,000 to the contest in support of Hoffman.

Armey, the former House GOP majority leader, noted that Democrats had seized on Hoffman’s inability to address local concerns.

“The fact of the matter is, he didn’t pay enough attention to the local concerns, and they were able to tag him as being unaware of the local needs and concerns,” Armey said.

Some analysts concluded Wednesday that while the conservative grass-roots activists who descended on the district had provided Hoffman with his greatest boost, they also had become something of a political liability.

“I think there was a level of resentment among voters about the intervention in the district,” said Democratic pollster Tom Jensen of Public Policy Polling, which surveyed the district the weekend before the election. “I think everyone who was undecided or everyone who changed their minds [in the final days of the race] voted for Owens.”

GOP Rep. Peter King, who represents a suburban New York district, said late-deciding voters recoiled from the influx of national activists into the rural district.

I am pretty proud of the people from upstate New York for standing up to outside manipulation of their local politics. Good for them! They may find a moderate Dem is a refreshing change of pace for them, and will help invigorate their district.

"Conservative grass-roots activists asserted Wednesday that third-party candidate Doug Hoffman’s loss in a New York special election was no setback but, rather, signaled a victory for the burgeoning political movement."

It is the beginning of an end to bloated, indifferent, corrupted, unaccountable, drunkin, socialist, freedom hating, nanny state loving, federal welfare supporting Statists.

I attended the tea party rally in DC on 9.12.09 and my nrg is still as strong as the day I stood on the Capitol lawn.

THATS A GREAT WAY for looney RIGHT WING GOP NEO-NAZIS to LOOK at EVERY RACE they LOSE ,, 'HEY WE DIDNT LOSE " ,",WE JUST CANT WIN' !! could be a GREAT CAMPAIGN SLOGAN for the PALIN /BACHMANN 2012 RUN because GOP IDIOTS are running rampant NOW..

Wow, how many ways can you say DENIAL????? You pumped all that money into an "inexperienced" candidate who "didn't bother to study the local issues" and had the endorsement of a number of right wingers which didn't get him a win and somehow you think you didn't lose. Why am I not surprised.......

Dick Armey, the chairman of FreedomWorks, the limited-government, anti-tax organization that has been instrumental in ginning up tea parties, said Hoffman’s loss was simply a function of having too little time — just two months — to mount a successful campaign.

HYPROCRITE DICK WHERE WERE YOU THE PASS 8 YEARS WHEN BUSH WAS SPENDING LIKE CRAZY.

"Conservative grass-roots activists asserted Wednesday that third-party candidate Doug Hoffman’s loss in a New York special election was no setback but, rather, signaled a victory for the burgeoning political movement."

The beginning of the end of the dream of Statists

I attended the Tea Party in DC on 09.12.09 and my NRG is as strong as the day I stood on the Capitol Lawn.

Even if they voted for DumbDumb they would have got wolf in sheeps clothing. Thats why Hoffman got so many votes, for those last minute mind changers, well thats what you voted for deal with it. Wow, that sounds just like what I tell the people that voted for 0bama...

Armey's right, the Conservatives "didn't lose"......they got smmmokkked by the Obama administration. The NY -23 election should be a case study taught in political science classes everywhere. First: The Obama administration "vacated" the GOP-held seat by promoting McHugh to be Sec of the Army. Second: Instead of "overplaying their hand" the administration was content to let the chips fall in the face between the Republican Dede and the Dem Owens. Third: Enter the Palinistas, Dick Armey and assorted "we-know-better-than-you-do" conservatives. What do they do? They break TWO rules. They forget Reagan's advise never "to speak ill of a fellow Republican". They also forgot that POLYSCI 101 rule which states that "All politics are local!". After the Club for Losers aka Club for Growth decide to screw up ANOTHER race; the White house sees an opening. Fourth: The administration works through the NY Dems to reach out to Dede, to secure her endorsement for the DEMOCRAT. Fifth: They send Biden up to NY 23 to help out Owens.....Summary: The best political move of last night's election was executed when the WhiteHouse secured the Republican's endorsement for her "neighbor", the Democratic candidate. Maybe Sarah Palin can see Russia from Alaska but she sure can't see the needs and interests of upstate New Yorkers from 5000 miles away! The Democrats gained the only seat that was up for grabs last night. What did the GOP learn? Nothing! Already today, Congressman Mike Pense has "endorsed Hoffman for 2010". Yes, that's right. The GOP STILL does not care that this guy does not live in the district that he would be representing. Who cares about issues or voters? The Conservatives have their "principals". Bravo Dick Armey!